The diagram below shows the domestic demand and supply curves in the market for newsprint in Paperland.
FIGURE 33- 5
-The principle of comparative advantage was first formulated in the 18th century by

Question

The diagram below shows the domestic demand and supply curves in the market for newsprint in Paperland.
  FIGURE 33- 5
-The principle of comparative advantage was first formulated in the 18th century by

Quizplus · Accepted Answer

The principle of comparative advantage was first formulated by David Ricardo in the 18th century. The principle states that a country should specialize in producing the goods in which it has a comparative advantage (i.e., can produce at a lower opportunity cost) and trade with other countries for goods in which they have a comparative advantage. This principle is based on the idea that even if a country can produce all goods more efficiently than another country, it can still benefit from trade by specializing in producing the goods in which it has a comparative advantage.

The Diagram Below Shows the Domestic Demand and Supply Curves